How will the US-China trade war impact South Africa?

A trade war is brewing between the world superpowers, USA and China and this could have dire economic consequences, not just for the two countries but globally too.

The possibility of such a war has been in focus after US President Trump announced tariffs on Chinese goods and China retaliated with tariffs on most agricultural imports from the US.

What happens in this regard is a possibility of trade diversion. So even if the US and China are having this battle, trade diversion means what may happen is that many of their market groups will be dumped on other markets to ensure that they don't overconsume or overproduce.

Lebohang Pheko, Senior Research Fellow and Political Economist at Trade Collective

READ: **China, US on the verge of waging Trade War. Get ready to be ‘collateral damage’**

South Africa and other African countries need to look at opportunities we can leverage from either countries at this particular time. Mainly because we need to find our own sense of agencies.

Lebohang Pheko, Senior Research Fellow and Political Economist at Trade Collective

ALSO READ: China hits back. Trade war with US erupts

It's important to remind ourselves that South Africa is a small open economy. Which means even if we are not exporting to the US directly, we may as well be exporting indirectly by sending our primary products which are commodities and raw materials indirectly to the to the US through Europe, India or China.

Professor Adrian Saville, CEO of Cannon Asset Managers and Professor at Gordon Institute of Business Science

Listen to the full interviews here:


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